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A-LevelBusiness StudiesBusiness Organisation and EnvironmentMay/June 2018Paper 2 Q130 Marks

Online Travel (OT) OT is a private limited company in country X that sells international holidays on the internet. All of OT's current range of holidays are to sunny places with beaches. Customers can search and purchase the holidays through the OT website. Each employee at OT has a contract of employment. OT employees work in three main areas of the business: • technical specialists who keep the website updated. The specialists work in shifts so that the website can be updated 24 hours a day, 7 days a week. • customer service employees who chat online and on the telephone to customers who need extra help to purchase their holiday. • operations employees who negotiate with the suppliers of holidays and carry out quality checks. In recent years demand for beach holidays has fallen, particularly among younger consumers. Due to this fall in demand, OT has made the decision to make 20% of the workforce redundant. The Marketing manager has carried out some market research to identify new markets OT might decide to enter (See Fig. 1). Fig. 1: Market research data Primary research: A quota sample, based on age (in years) Number of respondents who would prefer each type of holiday. Age | 16–30 | 31–40 | 40+ ---|---|---|--- Skiing holidays | 65 | 30 | 5 Safari holidays | 15 | 40 | 40 Cruise holidays | 20 | 30 | 55 Secondary research: Characteristics of each age group in country X [Figure showing Average annual salary by Age group] [Figure showing Average number of holidays taken each year by Age group] The Board of Directors has decided to target the 16–30 age group with low-priced skiing holidays. There is a limited budget for the marketing of these holidays. OT will need to rely on the internet to develop the marketing mix.

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About This A-Level Business Studies Question

This structured question appeared in the Cambridge A-Level Business Studies (9609) May/June 2018 examination, Paper 2 Variant 2. It tests the topic of Business Organisation and Environment and is worth 30 marks.

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